As an incentive for making savings and enhancing the public investment, the IT Act provides various options of investment to save taxes.
Under section 80C, individuals and HUF are allowed a deduction up to Rs. 100,000 on certain specified amounts paid or deposited towards –
·Subscription to the units of approved mutual funds
·Contribution to Provident Fund
·Life Insurance Premium
·Contribution to Approved Superannuation Plan
·Fixed deposit of minimum 5 years with scheduled banks, etc.
·Repayment of principal amount of Housing Loan.
·Subscription to any such security of the Central Government or any such deposit scheme as the Government may specify by notification in the Official Gazette
·Subscription to any National Saving Certificates (VII issue)
·Subscription to any such deposit scheme of:
(a)a public sector company which is engaged in providing long-term finance for construction or purchase of houses in India for residential purposes; or
(b)any authority constituted in India by or under any law enacted either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both,
as the Central Government may, by notification in the Official Gazette, specify in this behalf;
·As tuition fees (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admission or thereafter:
(a)To any university, college, school or other educational institution situated within India;
(b)For the purpose of full-time education of two children.